Opinion: California’s Crazy ‘PAGA’ Law Costs Companies Millions

In the NewsApril 14, 2019

ABM Industries, a janitorial service provider, recently agreed to a $5.4 million settlement in a class-action lawsuit on behalf of 3,000 employees. The employees claimed they were not reimbursed for the use of personal cell phones to clock in and out and communicate with their supervisors.

Based on similar lawsuits, the trial attorneys should get about $1.8 million and the state of California $2.7 million. Then there are administrative fees and related costs totaling another $500,000. That leaves the 3,000 employees with roughly $400,000, or about $133 each.